Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

PM Kisan scheme: Aadhaar optional for first installment; compulsory from second one


Mains Paper 3: Agriculture | Issues related to direct and indirect farm subsidies and minimum support prices

From UPSC perspective, the following things are important:

Prelims level: PM-KISAN

Mains level: PM-KISAN and its mandate


  • Farmers who wish to avail themselves of benefits under PM-KISAN must have Aadhaar identification to get the money from the second installment, which would be paid by July 2019.
  • However, this would not be compulsory for the first installment expected to be disbursed by March 31.

Pradhan Mantri Kisan Samman Nidhi

  1. Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs. 6,000 per year.
  2. This income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal installments of Rs. 2,000 each.
  3. Around 12 crore small and marginal farmer families are expected to benefit from this.

Aadhar will be mandatory

  1. States have been told to prepare a database of beneficiaries — small and marginal landholder farmer families in all villages — including whether they belong to SC/ST, bank account, mobile and Aadhaar details.
  2. For transfer of the first installment, Aadhaar number shall be collected wherever available.
  3. An alternate list of identification documents has also been provided, as options.
  4. However, for transfer of subsequent installments, Aadhaar number shall have to be compulsorily captured.

Land records

  1. States have also been told to update their land records, as that would serve as the basis for determination of landholding for beneficiaries.
  2. However, the secretary also said that the cut-off date for determination of ownership of land (as per land records) under the scheme was already over; the cut-off date was February 1, 2019.
  3. Changes thereafter in land records shall not be considered for eligibility of the benefit to the new land holder for next 5 years.
  4. Transfer of ownership on account of succession would, however, be allowed.

Role of States

  1. States would be given a maximum of 0.25% of funds transferred to beneficiaries in the first instalment to pay for their administrative expenses in the implementation of the scheme.
  2. That amount would drop to 0.125% for all further installments.
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